Angel talked about the path ahead right here...
The above should come as no secret to why the O/S was raised back in November. Everyone is "gun shy" with a 30B A/S and O/S...
How do you create shareholder value with a stock at 30B A/S?
Let me explain things in detail, so people don't run from "sticker shock"...
First, you put those shares in "friendly hands." What are friendly hands? Someone you trust. Someone that wants to see the company succeed. Someone that you maintain close contact with and is on the same page as you are. (*Why is this a trusted-relationship? Because a Venture Capitalist (VC) is investing his/her money in a company; in-return, they get company shares).
Second, you restrict those shares so the market is not flooded with additional free trading shares. This "keeps the float tight" and makes the stock rise and fall a much, much, much smaller A/S & O/S (we have seen how quick and explosive RIGH moves in Jan/Feb; her float is tight!).
Third, the MM works for the company. S/he knows what the credit line is, and knows where to draw a line in the sand. If any of those restricted shares are sold, the mm scoops those shares back up and they are repurchased by the company to either be retired and/or reissued to another V/C.
^^^ This is how you create shareholder value! ^^^
^^^ This is how a company gets money from a VC to grow the company! ^^^
^^^ I have seen this in play 1,000 times - this is what the stock market is all about - and how companies are grown! ^^^
^^^ The company benefits. The shareholder benefits. The V/C benefits. ^^^
It's a Win-Win!
Is this what BGMT is doing? Well, it certainly sounds like it doesn't it?
Quote:"- BGMT's future expansion plans require additional capital reserves beyond current revenue sources to implement. This was expressed in recent financials as well. Simply, technology is expensive to build. Great technology is very expensive to build. We've accomplished our initial goals of branding and dominance in the marketplace. Now it's time to get larger investment groups involved.
There are two ways to raise capital via a public company... a) on the back of the shareholders through dilution or direct stock sale, OR, b) through private capital raise via company equity (thus minimizing dilution). The company has never once utilized the existing shareholder base as a means to raise capital. This is the type of volatility introduced by the previous RightSmile management that we've looked to avoid creating in the marketplace. Path "B" is our focus, as it benefits all current shareholders. We also have strong preferred stock reserves to implement this. However, this path takes time and is often a moving target. The new laws in CO and WA have greatly assisted our efforts and we continue to push forward."
http://investorshangout.com/post/view?id=1163750
The above should come as no secret to why the O/S was raised back in November. Everyone is "gun shy" with a 30B A/S and O/S...
How do you create shareholder value with a stock at 30B A/S?
Let me explain things in detail, so people don't run from "sticker shock"...
First, you put those shares in "friendly hands." What are friendly hands? Someone you trust. Someone that wants to see the company succeed. Someone that you maintain close contact with and is on the same page as you are. (*Why is this a trusted-relationship? Because a Venture Capitalist (VC) is investing his/her money in a company; in-return, they get company shares).
Second, you restrict those shares so the market is not flooded with additional free trading shares. This "keeps the float tight" and makes the stock rise and fall a much, much, much smaller A/S & O/S (we have seen how quick and explosive RIGH moves in Jan/Feb; her float is tight!).
Third, the MM works for the company. S/he knows what the credit line is, and knows where to draw a line in the sand. If any of those restricted shares are sold, the mm scoops those shares back up and they are repurchased by the company to either be retired and/or reissued to another V/C.
^^^ This is how you create shareholder value! ^^^
^^^ This is how a company gets money from a VC to grow the company! ^^^
^^^ I have seen this in play 1,000 times - this is what the stock market is all about - and how companies are grown! ^^^
^^^ The company benefits. The shareholder benefits. The V/C benefits. ^^^
It's a Win-Win!
Is this what BGMT is doing? Well, it certainly sounds like it doesn't it?
